Stock

Private company (Unlisted or unquoted company)

A business company owned either by non-governmental organization or by a relatively small number of shareholders or company members which does not offer or trade its company's stocks to the general public in the stock market exchange, rather it is done privately.

Repurchases

A company buys back its own stock from the market.

Tender offer

A company makes an offer on another companies stock.

Public company

A company whose shares are traded freely on a stock exchange

Bear Market

A decline in stock values over a period of time. Some analyst define this kind of market as a price decline of 20% or more over at least a two-month period.

SEC filings

A financial statement or other formal document submitted to the U.S. securities exchange commission. Public companies, certain insiders, and broke-dealers are required to make regular filings of this type

Buy and Hold

A passive investment strategy in which an investor buys stocks and holds them for a long period of time, regardless of fluctuations in the market.

Bull Market

A rise in stock values over a period of time.

Cyclical stocks

A stock that rises quickly when economic growth is strong and falls rapidly when growth is slowing down. Examples include the automobile, steel, and housing industries.

Defensive Stocks

A stock that tends to remain stable under difficult economic conditions. This includes food, healthcare, oil, and utilities. These stocks hold up in hard times because demand does not increase as dramatically as it may in other sectors.

Value stocks

A stock that tends to trade at a lower price relative to its fundamentals (I.e. Dividends, earnings, sales, etc) and thus considering undervalued by a value investor

Secondary offerings

Additional offering used to raise capital

8-K

After a significant event like bankruptcy or departure of a CEO, a public company generally must file a current report on this form within four business days to provide an update to previously filed quarter reports on Form 10-Q and/or annual reports on form 10-K. It is also required to be filed by public companies with the SEC pursuit to the security exchange act of 1934, as amended.

Stock splits

An issue of new shares in a company to existing shareholders in proportion to their current holdings

Limit order

An order to buy or sell a security at s specific at a specific price. It can only be executed at the limit price or lower, and to sell it, it can only be executed at the limit price or higher.

Stop Order (stop-loss)

An order to buy or sell stock once the price of the stock reaches a specified price.

Market Orders

An order to buy to sell a stock at the current market price.

10-K

Annual financial statements filed with the SEC

Types of financial statements.

Balance sheet, income statement, cash flow statement, and equity statement.

PE Ratio

Current stock divided by EPS

Earnings Per Share (EPS)

Earnings (Income) divided by the number of shares outstanding.

Dollar-cost averaging

Investing fixed dollar amounts over a period of time.

Stock

Is an equal investment in a company (ownership)

Two largest stock markets worldwide

NYSE & NASDAQ

NASDAQ

National Association of Securities Dealers Automated Quotations - no central trading floor.

NYSE

New York Stock Exchange - oldest market, traditional trading floor.

Common stock vs. preferred stock

Preferred stock has more "rights" than common stock

10-Q

Quarterly financial statements filed with the SEC

Reverse splits

Reduction in the number of a company's traded shares that results in an increase in the par value or earnings per share.

Growth Stocks

Shares in a company whose earnings are expected to grow at an above-average rate relative to the market.

Diversification

Spreading your portfolio over multiple investments and/or different types of investments.

The security and exchanges commission (SEC)

The federal agency that regulates the stock markets.

Initial public offering (IPO)

The first sale of stock by a company to the public. A company can raise money by issuing either debt or equity. If the company has never issued equity to the public, it's known as this. companies fall into two broad categories: public and private

Public sector

The part of an economy that is controlled by the government and run by municipal, state, and federal governments.

Private sector

The part of the national economy that is not under direct government control

Selling Short

The selling of a security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. Short sellers assume that they will be able to buy the stock at a lower amount than the price at which they sold short.

Debt-to-equality ratio

Total debt divided by the value of outstanding shares.

Traditional method

Underwriting firm buys all of the companies shares and then resells them.

Buying on the Margin

Using borrowed money to purchase stocks